Form 1099-NEC is new for 2020 reporting.  The form is used to report non-employee compensation, formerly Box 7 on Form 1099-MISC.  The IRS reinstituted this form since Form 1099-MISC had separate due dates for filing with the IRS based on the types of payments. Non-employee compensation payments needed to be mailed and filed by January 31st.  Other types of payments, Rent, Royalties, etc. had a filing deadline of March 31st, February 28th if filing on paper.  The varying due dates for one form caused unintentional late filings and penalties with the IRS.  

Box 1 – Non-employee compensation and/or nonqualified deferred compensation (NQDC)

Box 2 – Reserved

Box 3 – Reserved

Box 4 – Backup withholding.  A payer must backup withhold on some payments if the vendor did not provide a TIN number to payee.

For more information, the 1099-NEC instructions can be found here, https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

1099 NEC